Every three years, the Federal Reserve conducts their Survey of Consumer Finances in which they collect data across all economic and social groups. The latest survey, which includes data from 2010-2013, reports that a homeowner’s net worth is 36 times greater than that of a renter ($194,500 vs. $5,400). The latest survey data, covering 2014-2016 will be released later this year. In the meantime, Lawrence Yun, the National Association of Realtors’ Chief Economist estimates that the gap has widened even further, to 45 times greater ($225,000 vs. $5,000)!
As we’ve said before, simply put, homeownership is a form of ‘forced savings.’ Every time you pay your mortgage, you are contributing to your net worth. Every time you pay your rent, you are contributing to your landlord’s net worth. The latest National Housing Pulse Survey from NAR reveals that 84% of consumers believe that purchasing a home is a good financial decision. William E. Brown comments: “Despite the growing concern over affordable housing, this survey makes it clear that a strong majority still believe in homeownership and aspire to own a home of their own. Building equity, wanting a stable and safe environment, and having the freedom to choose their neighborhood remain the top reasons to own a home.”
If you are interested in finding out if you could put your housing cost to work for you by purchasing a home, call the Stovall Team today and we can guide you through the process. At the Stovall Team we believe every family should feel confident when buying & selling a home. We place a premium on customer service drawing on more than 60 years of combined experience and out-of-the box thinking to ensure that their Team provides the best.
Sources: Federal Reserve, National Association of Realtors, Stovall Team
Homeowners: Do You Know Your Home’s Value?
Social Media is full of links asking you to click for your home’s value but that isn’t the best way to approach this important information. The latest edition of CoreLogic’s Home Price Index shows that nationally, home prices have appreciated 6.7% over the last year and 0.9% month-over-month. The release of the report included this headline, “National Home Prices Now 50% Above March 2011 Bottom”
The real estate market has come a long way since 2011, which is great news for homeowners! Nearly 79% of homeowners with a mortgage in the US now have significant equity in their homes (defined as over 20%), according to the latest Equity Report. The challenge is that not every homeowner knows how much their home’s value has appreciated. Homeowners in Denver, CO lead the way with 8.7% appreciation over the last year, while owners in Washington and Utah have experienced a 3% increase in values since the start of this year! Nationally, CoreLogic forecasts that home values will increase another 5.0% by this time next year. Bill Banfield, VP of Capital Markets at Quicken Loans, recently explained the importance of knowing the conditions in your area,
Bottom Line
Do you know what your house is worth? Have you stayed put because you are nervous you won’t have enough equity to buy your dream home? Meet with the Stovall Team and we will perform an equity analysis and give you the freedom to achieve your dreams.